Veterans may receive refunds from Wells Fargo loans

February 22, 2011

Freedom New Mexico

Nearly 60,000 service members and veterans who refinanced their Veterans Affairs Department mortgage loans through Wells Fargo, Wachovia and SouthTrust will receive refunds as the result of a $10 million settlement in a class-action lawsuit, a Wells Fargo official said.

Wells Fargo spokeswoman Vickee Adams said there was no way of knowing how many veterans in the Clovis and Portales area may be affected.

Adams said any veteran who refinanced a loan through Wells Fargo Mortgage department between Jan. 20, 2004, and Oct. 7, 2010, could be eligible for a refund, which will be about $175, depending on the loan, Adams said.

According to an Air Force Times article, the settlement was reached as the result of a suit filed in Georgia alleging that Wells Fargo improperly rolled attorneys’ fees into expenses charged to veterans for things like title searches. Under VA rules, the lender must cover any costs for attorneys’ services other than for title work, and cannot bill the borrower for these charges.

Adams said letters will be sent in the next month to those who may be affected. She said veterans who refinanced during the time frame can file a claim for their refund. Instructions on how to file will be detailed in the forthcoming letters, Adams said.